简体中文
By APD Writer Maverick
JAKARTA, Aug. 29 (APD) — Indonesian government and the United States-based copper and gold mining firm Freeport McMoran agreed on terms to extend the latter’s operation permit in Indonesia’s territory, so as to extend operation of the mining firm in Indonesian territory until 2031.
The agreement was announced here on Tuesday in a joint press conference presenting Indonesia Energy and Mineral Resources Minister Ignatius Jonan, Finance Minister Sri Mulyani and Freeport McMoran CEO Richard Adkerson.
Through the agreement Freeport McMoran pledged to comply with several conditions required by Indonesian government for the company to continue its operation in Indonesia’s easternmost province of Papua.
Conditions asked by Indonesian government were divestment of Freeport shares up to 51 percent, construction of the mining firm’s smelter facility in Indonesia and pay more tax and royalty for the government.
“This is the mandate from President Joko Widodo and was accepted by Freeport that the divestment would reach 51 percent. Now processes to make the firm has the working contract under IUPK scheme were underway,” Jonan said in the event held in his office here on Tuesday, referring to scheme of new working contract required by Indonesian government for foreign mining firm.
Agreement to divest the shares has ended years of negotiation between the two sides for years. Indonesia now has 9.36 percent of the firm shares, obtained from the old working contract (KK) signed under the administration of former president Soeharto.
Details on shares divestment is expected to be finished this week, the minister said.
The smelter facility is expected to operate in 2022 after the IUPK contract is released by government. The facility is expected to give added value for gold and copper products exported by Freeport McMoran from Indonesia, employs more local workers.
Speaking in the session, Adkerson said that Freeport has plans to expand its investments in Indonesia, has allocated 2 billion U.S. Dollars to finance the expansion. Most of the expansion budget would be allocated to develop underground mining sites.
“It would require thousands of workers, to provide massive social and financial benefits,” Adkerson said.
The world’s biggest publicly traded copper company, has been operating in Papua for 30 years, its working permit was scheduled to expire in 2021. It now runs mills, open mining and underground mining sites in Papua hilly ground of Grasberg.
(ASIA PACIFIC DAILY)
